McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 151. |
If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is: |
| A. | Inelastic |
| B. | Elastic |
| C. | Unitary elastic |
| D. | Perfectly elastic |
| Answer» A. Inelastic | |
| 152. |
The horizontal supply curve parallel to quantity axis represents: |
| A. | Elastic supply |
| B. | Inelastic supply |
| C. | Perfectly elastic supply |
| D. | Perfectly inelastic supply |
| Answer» C. Perfectly elastic supply | |
| 153. |
A fall in income of the consumer, other things being equal, causes: |
| A. | Increase in demand |
| B. | Decrease in demand |
| C. | Increase in quantity demanded |
| D. | Decease in quantity demanded |
| Answer» A. Increase in demand | |
| 154. |
Which of the following causes an increase in supply: |
| A. | Fall in price of inputs |
| B. | Increase in number of producers |
| C. | Decrease in the price of production substitutes |
| D. | All of the above |
| Answer» D. All of the above | |
| 155. |
Cross elasticity of demand in the case of substitutes: |
| A. | Zero |
| B. | Negative |
| C. | Positive |
| D. | Infinity |
| Answer» C. Positive | |
| 156. |
A movement down the given demand curve shows: |
| A. | Increase in demand |
| B. | Decrease in demand |
| C. | Extension in demand |
| D. | Contraction in demand |
| Answer» C. Extension in demand | |
| 157. |
Which of the following results in an increase in an increase in demand: |
| A. | Fall in prices of substitutes |
| B. | Increase in price of complementary goods |
| C. | Fall in consumer’s income |
| D. | None of the above |
| Answer» D. None of the above | |
| 158. |
Change in quantity supplied of a product can result from: |
| A. | Changes in own price |
| B. | Changes in cost of production |
| C. | Change in technology |
| D. | Change in price of related products |
| Answer» A. Changes in own price | |
| 159. |
An increase in supply means: |
| A. | Movement down given supply curve |
| B. | Movement upward given supply curve |
| C. | Leftward shift in supply curve |
| D. | Rightward shift in supply curve |
| Answer» D. Rightward shift in supply curve | |
| 160. |
At prices above the equilibrium price: |
| A. | Quantity supplied exceeds quantity demanded |
| B. | Quantity demanded exceeds quantity supplied |
| C. | There is shortage |
| D. | All of the above is possible |
| Answer» A. Quantity supplied exceeds quantity demanded | |
| 161. |
An increase in market supply, demand remaining the same causes: |
| A. | Increase in equilibrium price |
| B. | Decrease in equilibrium quantity |
| C. | Decrease in equilibrium price and increase in equilibrium quantity |
| D. | Both equilibrium price and quantity rises |
| Answer» C. Decrease in equilibrium price and increase in equilibrium quantity | |
| 162. |
An increase in market demand, supply remaining the same results in: |
| A. | Decrease in equilibrium price |
| B. | Decrease in equilibrium quantity |
| C. | Decrease in equilibrium price and increase in equilibrium quantity |
| D. | Both equilibrium price and quantity rises |
| Answer» D. Both equilibrium price and quantity rises | |
| 163. |
A fall in the market demand, supply remaining the same results in: |
| A. | Increase in equilibrium price |
| B. | Increase in equilibrium quantity |
| C. | Increase in equilibrium price and decrease in equilibrium quantity |
| D. | Both equilibrium price and quantity falls |
| Answer» D. Both equilibrium price and quantity falls | |
| 164. |
Which one of the following elasticities takes the average of prices and quantities: |
| A. | Point elasticity of demand |
| B. | Arc elasticity of demand |
| C. | Income elasticity of demand |
| D. | Cross elasticity of demand |
| Answer» B. Arc elasticity of demand | |
| 165. |
When demand curve is rectangular hyperbola, the value of price elasticity of demand will be: |
| A. | Zero |
| B. | One |
| C. | Greater than one |
| D. | Infinity |
| Answer» B. One | |
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